The Nigerian Federal Government has decided to liquidate NITEL (Nigerian Telecommunications Limited), after several failed attempts to sell the company.
This process was approved by the National Council on Privatisation, headed by Nigerian Vice President Namadi Sambo, at a meeting on Monday.
NITEL and its mobile arm M-Tel will be sold through “guided liquidation” due to the company’s huge liabilities, the Bureau of Public Enterprises (BPE) said in a statement.
“The committee recommended that ‘guided liquidation’ should be adopted as the strategy for the privatisation of NITEL/M-Tel in view of the huge liabilities of both companies and that there was no viable financial alternative presented by the management of NITEL/M-Tel,” Chukwumah Nwokoh, BPE spokesman, said.
Nwokoh said the NCP supports the Technical Committee’s recommendation of ‘guided liquidation’. Despite, venues not accounting for, “the management of NITEL/M-Tel had been obtaining their salaries from the Federal Government of Nigeria.
Consequently, the NCP has directed the the Technical Committee on Information, Communication, National Facilities and Agric Resources to immediately carry out investigations and ensure that all revenues received were accounted for.”
Elias Kazza, Senior Staff Association of Communications, Transport and Corporations President told the Daily Trust that privatisation efforts failed due to the selfish interest of some Nigerians.